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Query: What is the meaning of Board of Directors and Director in a Company?

Category: Corporate Law

Answer: As a company is a separate legal entity and artificial legal person created by law which act only through the agency of natural persons / human beings. So, the company is managed by a body of persons who are called “Board of Directors”. So the Board of Directors means a group of those individuals who are elected by the shareholders of a company in order to manage the affairs of the company. And “Director” is a person who is elected by the shareholders of a company in order to direct the company’s policies; the person appointed or elected according to rules & Regulations, or who are authorized to manage and direct the affairs of a company. And Only an individual living person can be Director of a company. A body corporate, business entity or other company can not be appointed as Director of a company.

Date Posted 26-Dec-2019
Posted By Divya Sharma
Views: 604

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